With energy prices rising, the UK inflation rate more than doubled in April

With energy prices rising, the UK inflation rate more than doubled in April

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The annual inflation rate in April doubled to 1.5%, the highest level in more than a year due to rising gasoline prices and rising natural gas and electricity bills.

The consumer price index rose from 0.7% in March, in line with the expectations of economists and the Bank of England, who saw the move as a step in which the inflation rate exceeded the 2% target by the end of the year.

Unlike the United States, the United States’ inflation rate reached 4.2% in the same month, while the United Kingdom’s figures have yet to show signs of continued price increases and overspending.

The Governor of the Bank of England Andrew Bailey said on Tuesday that he is watching the data “extremely cautious” to find evidence of the bank’s continued excess growth, and that if the risk becomes obvious, he will not hesitate to adopt a tightening monetary policy. action. These figures are not enough to increase the pressure on central banks to start raising interest rates from a historical low of 0.1%.

According to the National Bureau of Statistics, the main driving force for the increase in inflation is household utility bills. Compared with the same month a year ago, household utility bills rose sharply in April, and rising oil prices led to an increase in the cost of pumps.

Grant Fitzner, chief economist of ONS, said: “As the price of crude oil continues to rise, this has penetrated into the cost of automotive fuel, which has reached the highest level since January 2020. “

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